Nippon Steel Drops Lawsuit Against Toyota

Nippon Steel, Japan's leading steelmaker, dropped its patent lawsuit against Toyota Motor Corp. The suit alleged a patent infringement over a technology used in electric motors. The decision was made to avoid disputes among Japanese companies, as the steelmaker believes such internal wrangling does not contribute positively to the nation's competition in the global market. Instead, it sees the partnership with Toyota, the country's largest automaker, as critical for the future success of the Japanese auto industry.

The lawsuit, which demanded a whopping compensation of 20 billion yen or 133 million USD, was filed in the Tokyo District Court in October 2021.

Focus on Carbon Neutrality

The company's decision comes in a rapidly changing environment wherein priorities shift towards achieving carbon neutrality. Nippon Steel expressed in a statement that such internal disputes among Japanese companies were not fitting during a period marked by uncertainty and a significant rush towards the development of electric vehicles – a critical step towards achieving carbon neutrality.

Ongoing Lawsuit against Baoshan Iron & Steel Co.

While it has dropped its case against Toyota, Nippon Steel continues its legal battle against Baoshan Iron & Steel Co., otherwise known as Baosteel, a Chinese steelmaker. The steelmaker alleges that Baosteel violated their patent related to steel production. The legal spat remains ongoing, with Baosteel contesting the lawsuit.

Association with Electric Vehicle Technology

Interestingly, the patent lawsuit against Toyota and Baosteel is synonymous with the technology used with electric vehicles. The intellectual property dispute specifically concerned the steel sheets used in the electric motors of these vehicles. Nippon Steel's contention revolves around these steel sheets, as they claim that Baosteel manufactures and supplies the steel sheets that purportedly violate their patent.